here is a query that if my father pay a cheque of his own bank account to a bullion trader and i want to take invoice on my name not on my father's name and want him to adjust our(mine and my father's) balances through journal entry. is it alloawable? can the trader do so?
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Accounting journal entry adjustments
Replies (4)
Yeah of course. just get a letter from your father addressing the trader that he does not have any objections is invoicing the bill and delivering the product to you(son).
you can also give a letter to the trader that the amount will be settled by another person on your behalf
This will do Mr anil
ok thank you very much for this professional suggestions. yeah offcourse i have decide to give the letters to the trader but just wanted to know if there is contravention of any section of income tax. thanks again
Sir, The way we keep books is also equally imporrtant. But, here since the parties are related, it is wise to have a written copy addressed to a third party(the person with whom the business is).
It serves as a document at the time of IT scrutiny etc...
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